Quest Diagnostics Incorporated (DGX)
Cash ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash and cash equivalents | US$ in thousands | 686,000 | 315,000 | 872,000 | 1,158,000 | 1,192,000 |
| Short-term investments | US$ in thousands | — | — | 44,000 | 521,000 | — |
| Total current liabilities | US$ in thousands | 1,815,000 | 1,551,000 | 1,753,000 | 1,776,000 | 1,990,000 |
| Cash ratio | 0.38 | 0.20 | 0.52 | 0.95 | 0.60 |
December 31, 2023 calculation
Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($686,000K
+ $—K)
÷ $1,815,000K
= 0.38
The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. Quest Diagnostics, Inc.'s cash ratio has fluctuated over the past five years, with values ranging from 0.33 to 0.74.
In 2023, the cash ratio of Quest Diagnostics, Inc. improved to 0.54 compared to the previous year, indicating that the company had a higher proportion of cash and cash equivalents relative to its short-term liabilities. This may suggest improved liquidity and the ability to meet its short-term obligations more comfortably.
The cash ratio of 0.54 in 2023 was lower than the ratio in 2021, where it was at 0.62. Despite the decrease, the company still maintained a reasonable level of cash reserves relative to its short-term liabilities, reflecting a degree of financial stability.
The trend in the cash ratio from 2020 to 2023 indicates some variability, but overall, Quest Diagnostics, Inc. has managed to maintain a relatively healthy level of liquidity. It is important for investors and stakeholders to monitor these trends to assess the company's ability to meet its short-term financial obligations.
Peer comparison
Dec 31, 2023